By BLOOMBERG NEWS

Published: June 28, 2007

Poland's central bank unexpectedly raised its benchmark interest rate, for a second time this year, on concern that wage growth will force companies to increase prices. The Monetary Policy Council, which is led by the central bank, lifted the seven-day reference rate a quarter-point, to 4.5 percent. ''It is possible that wage pressure will continue to grow, strengthening inflation pressure,'' the council said after the meeting. It said inflation might temporarily slow in the third quarter, helped by the healthy financial standing of companies and growing competition among service providers and goods producers. The inflation rate, at 2.3 percent in May, is nearing the central bank's mid-range target rate of 2.5 percent.